A Bulgarian Court of Appeals has ruled that Turkey's state-owned wagon producer Tuvasas is entitled to damages following Bulgarian Railways company cancellation of a tender involving the sale of 30 sleeper style rail cars, Hurriyet Daily News reported.

The tender was held in accordance with the Bulgaria-Turkey Transportation Cooperation Protocol, but was later canceled by BDZ.

In considering Tuvasas's appeal, the court said a tender that has come to a conclusion could not be canceled. Following the decision BDZ will have to accept 30 sleeping cars from Tuvasas in accordance with the conditions of the tender.

The tender process dates back to the initial bidding process of April 11, 2008, after which Adapazar?-based Turkish company Tuvasas offered to produce the wagons for nearly 1 million euros less than its closest competitor.

BDZ had to finalize the agreement in the month following bidding, but the state company allegedly used the budget for other business. After the general elections in June last year, the new government in Sofia reshuffled the BDZ administration. The new BDZ executives have yet to sign the deal on the wagons.

The article says that BDZ refused to inform the Turkish company of reported misuse of funds and canceled the tender altogether in July.

Later, BDZ opened another tender, prompting Tuvasas to appeal to Bulgaria's Competition Board. Then board rejected the appeal and Tuvasas was forced to go to the higher court.

According to the court decision, BDZ will either purchase the sleeping cars or will have to pay substantial damages to Tuvasas.